Kenny warns of 'very grave' tax and ethics issues

FG reaction: Fine Gael leader Enda Kenny last night described the situation involving the Taoiseach and the payments of €50,…

FG reaction: Fine Gael leader Enda Kenny last night described the situation involving the Taoiseach and the payments of €50,000 to him as "very grave" and claimed that Bertie Ahern now had serious questions to answer with respect to tax issues and ethics legislation.

Mr Kenny is to attempt to question the Taoiseach today during Leaders' Questions in the Dáil, and his party is also considering making a complaint to the Standards in Public Office Commission. He said he believed the Taoiseach should not have accepted the money in the first place as he was minister for finance at the time.

The party is focusing on the appointment of at least four of the donors by the Government to State boards since 1997, and senior party figures believe Mr Ahern may have been required to make a declaration of a potential conflict of interest when they were being appointed by Government.

"I'm saddened by the revelations I heard in the Taoiseach's statement this evening," Mr Kenny told reporters outside Leinster House last night.

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"I believe he has a grave and serious issue to face here. There are a number of areas that he needs to respond to, particularly in regard to ethics for officeholders legislation, particularly in respect of the appointment of personnel to State boards.

He said there were further questions "in respect of the receipt of cash donations and the acceptance of those cash donations by him as minister, setting a set of standards that apply to nobody else but himself".

He added: "Secondly in regard to taxation matters, the Taoiseach says he has fully complied with all tax matters. I'd like to hear a statement from the Revenue Commissioners on that basis." He said he was astounded by the silence of the PDs on the matter.

He claimed that previous statements by Tánaiste Michael McDowell in support of Mr Ahern were "dictated by his desire to see out the remaining weeks and months of this Government by being wedded to Fianna Fáil. Speak up Michael."

He said that the amount of money given to the Taoiseach would have bought a house. "That's the equivalent of €100,000 in today's money. The question of right and wrong for a senior officeholder enters into this. And the Taoiseach cannot set standards for himself that do not apply to anyone else.

Asked about his own finances, Mr Kenny said he had no similar issues. "I'm not beholden to any businessman," he said.